US Treasury Secretary Nominee Finally Acknowledges Bitcoin’s Usefulness

President Joe Biden’s Treasury Secretary nominee, Janet Yellen, appears to have endorsed Bitcoin (BTC) and the cryptocurrency industry, following previous negative comments about the technology.

The Treasury Secretary nominee stated—in a written response to the US Senate Finance Committee—that cryptocurrencies have immense benefits that need to be taken advantage of. She noted that the technology would be useful in improving “the efficiency of the financial system.”

While Yellen strongly believes that cryptocurrencies have many added benefits for the country’s financial system, she noted that also get used maliciously for money laundering, terrorism financing, and other illicit activities.

A passage from Yellen’s statement reads: “I think we need to look closely at how to encourage their use for legitimate activities while curtailing their use for malign and illegal activities. If confirmed, I intend to work closely with the Federal Reserve Board and the other federal banking and securities regulators on how to implement an effective regulatory framework for these and other fintech innovations.”

Yellen’s endorsement of the immense potentials of cryptocurrencies and call for an effective regulatory framework for the industry shows the balanced approach the Treasury Secretary nominee is taking towards the tech.

That said, this stance is a complete change in stance compared to recent statements from the official.

While Yellen continues to assert that cryptos are used for illicit activities, recent investigations have shown that these sentiments are exaggerated. Chainanalysis, a blockchain intelligence company, recently reported that cryptocurrency-related crime dropped to a paltry 0.34% in 2020.

Key BTC Levels to Watch — January 22

Following a brutal bear market over the past few days, Bitcoin appears to be regaining its bullish momentum again, as anticipated. The cryptocurrency has now formed a mini trendline to the upside, as BTC recovers from oversold conditions. This factor asserts that Bitcoin could get back to its recent highs in the coming days.

Meanwhile, our key resistance levels are at $34,000, $35,000, and $36,000. While our key support levels are at $33,000, $32,000 and $31,000.

Total Market Capitalization: $965 billion

Bitcoin Market Capitalization: $625 billion

Bitcoin Dominance: 64.7%

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